The marital deduction is a deduction, available to the estate of the first spouse to die, that lets the decedent transfer an unlimited amount of property to the surviving spouse. There are certain restrictions that might limit the amount of the deduction, but these are exceptions to the rule that are beyond the scope of this course.

While the marital deduction permits estate planning opportunities that could benefit many couples, there are a few drawbacks that demand consideration.

• The marital deduction does not eliminate the estate tax liability for the first spouse to die; it merely defers taxation until the second spouse's death (at which point estate assets could, conceivably, be more highly valued).
• Taking full advantage of the marital deduction (i.e., transferring all property to the surviving spouse) means giving up the estate tax credit on the death of the first spouse.